Updated: Hutchinson Target to close in February

The announced closing of the Target store in Hutchinson Monday stunned local consumers while continuing a record-setting year for shuttered retail outlets across the nation.

While employees here would not comment on the report, officials at Target’s corporate office in Minnesota, citing “decreasing profitability," confirmed the store would close Feb. 3. The store at 1529 E. 17th Ave. employs 76 people, full and part time.

“This decision was not made lightly,” stated Kristy Welker, a Target spokeswoman at the company's corporate headquarters in Minneapolis. “We have a rigorous process in place to evaluate the performance of every store on an annual basis, closing or relocating underperforming locations as needed. Typically, a store is closed as a result of seeing several years of decreasing profitability."

After the story broke early Monday afternoon, it drew more than 275 comments on The News' Facebook page, mostly expressing disappointment and frustration.

"I am still devastated and missing Dillards and Hastings," Bethany Krafels of Hutchinson wrote in her comments, reflecting the frustration of most. "I will have no reason to go out and about anymore with Target gone. We are becoming more and more antisocial with our online shopping."

Consumers spending more time and money shopping online has contributed to a record number of retail stores closing since Jan. 1. CNN Money reported last month the number of retail outlets closing, or planning to close this year, has topped 6,800 - more than in 2008 during the Great Recession. J.C. Penney, Kmart, Sears, the Limited, Wet Seal and Gap are among those that have closed stores. Another 300 retailers have filed for bankruptcy.

There are no other Target stores in Kansas closing this quarter, Welker said, though there are others in the U.S.

The company notified its employees in Hutchinson Monday.

“Our team is one of our greatest assets,” Welker stated. “All eligible Target store team members are being offered the option to transfer to other Target stores.”

The company will offer employees who opt not to transfer a separation package based on years of service, Welker said.

The Feb. 3 closing date is based on the corporation's fiscal calendar, Welker said, and it is unlikely the store would close sooner.

City officials were informed of the planned closing by Target on Monday morning, and Mayor John Daveline notified the Hutchinson/Reno County Chamber of Commerce, said Chamber President Debra Teufel.

“Obviously it’s unfortunate news for our community,” Teufel said.

The chamber will reach out to the corporation to see if there is anything local officials can do to keep the store here, Teufel said, but noted, “usually once the decision is made, it’s well-founded on data.”

“The company uses analysts to see what sales targets they need to be hitting and if they’re not hitting, they make these unfortunate decisions,” she said. “My guess is, with the numbers they’re seeing, it’s what the Amazon effect is doing to major department stores. That, coupled with underperformance, is cannibalizing stores.”

“Solving retail decline is a renewed focus of the chamber,” said Teufel, who started here in June. “We are doing everything we can to put together a plan to aggressively pursue new avenues for new retail niches that need filled, not only to fill empty buildings but to improve the variety of retail offerings in our community.”

“But it does take everyone making a conscientious effort to stem the effects of online shopping – to ensure we’re doing all we can to shop local,” Teufel said. “It’s been a line of the chamber, especially in November and December, while thinking holiday shopping and the choices we have, every time you have an opportunity to shop locally, it makes a difference in the ability of stores to keep their doors open.”

The chamber encourages local Target employees “to be proactive” in their job search and contact Kansas Workforce One at the Career Center at Hutchinson Community College.

“As we do with any employer going through a mass layoff, we’ll definitely cooperate with Workforce One to make sure there’s a job fair to match employees with job opportunities,” Teufel said. “If there is any bright spot, it’s that there are job opportunities for people who are looking. If people don’t know how to contact Workforce One, they can contact the chamber, and we’ll make sure they are connected.”

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